No, this isn’t an article about about the Subway lunch special, it’s about the price of gasoline. The price of a gallon of gas is fast approaching $4, and recently experts have predict that a gallon of gas will go as high as $5 in 2012. A range of factors have shocked the oil markets in recent years, be it speculators, war, hurricanes, peak oil, big oil, terrorists, revolution, QE1 or QE2, or simply supply and demand, but it is not the reason that is important to the individual filling up his tank. It is the trend that matters, and that trend shows that the price is on the rise.
So the question that must be asked is how will the rise in price impact an individual’s bottom line and how can they control their exposure to this trend? Clearly the more one drives the greater the impact, so a solution is to live where using driving isn’t needed just to buy a soda.
Certainly, there are other costs that can be higher or lower depending on where someone lives, and how big they live, but living in certain locations is sure to cost more at the pump. Choosing to live in a built environment that allows people to get around without the requirement of an automobile allows people to avoid fluctuations in cost and have a fixed budget that is not susceptible to the whims of the oil market.